The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has raised concerns over the persistent hike in petrol pump prices across the country despite the decline in global crude oil prices.
The association accused petroleum marketers of exploiting Nigerian consumers and called on regulators to enforce price transparency.
Speaking during a press briefing in Abuja on Monday, PENGASSAN President Festus Osifo stated that based on current market indicators, petrol should be retailing between ₦700 and ₦750 per litre, not the ₦850–₦900 range currently observed at retail stations nationwide.
“If you go online and check the PLAT cost per cubic metre of PMS, convert that to litres and then to our naira, you will see that with crude at around $60 per barrel, petrol should be retailing between ₦700 and ₦750 per litre,” Osifo explained.
The recent surge in petrol prices follows a combination of factors, including supply disruptions caused by a strike by tanker drivers in Lagos and heightened geopolitical tensions in the Middle East. These factors have led to an increase in depot rates, which marketers have passed on to end-users despite weakening crude prices.
PENGASSAN criticized the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for failing to perform its oversight function effectively. Osifo noted that the lack of regulatory enforcement has enabled arbitrary pricing practices in the downstream sector, leaving consumers exposed to undue economic strain.
“It is the function of the regulator to ensure that Nigerians are not exploited. We call on NMDPRA to do everything possible to ensure that Nigerians are protected from price manipulation,” he said.
The union also urged the regulator to publish a transparent pump pricing template based on international benchmarks and local cost variables, including foreign exchange rates and landing costs.
“As it stands, if this trend continues, it means that even if crude prices drop to $50 per barrel, there will be no appreciable reduction in pump prices,” Osifo warned.
The call by PENGASSAN comes amid broader concerns about inflationary pressures, rising logistics costs, and weak consumer purchasing power.
Analysts note that without a robust regulatory pricing mechanism, the downstream sector may remain susceptible to pricing volatility and speculation.
